Portfolio advice required

POSTED BY chetana r ON March 4, 2013 2:55 pm COMMENTS (4)

Hi,

I have the following funds in my portfolio which i have been holding for last 3 years now

HDFC Prudence Fund – Growth Plan = Rs.40,000

HDFC Top 200 – Dividend Plan = Rs. 40000

HDFC Top 200 – Growth plan – 40000

Birla Div Yield Plus – Growth = Rs. 25000

Brila Sunlife frontline equity fund -growth = Rs. 5000

ICICI Prudential Blue chip – div = Rs. 35000

The overall portfolio is showing an unrealised gain of around Rs.3226 which is not even 5% total amount invested ….

along with this I have some additional money which I would want to invest preferabbly in mfs rather than putting in an FD… But with the low returns on the existing portfolio am a little hesitant now…Please suggest a way to rebalance/rectify my portfolio to achieve a more decent gain in the coming 3 to 5 years…

– Chetana

 

 

 

4 replies on this article “Portfolio advice required”

  1. chetana r says:

    thank you Mr. Ramesh and Mr. Ashal for your replies…

    Addressing Ramesh’s queries…

    Regarding Dividends…Yes the HDFC top 200 has given some dividends..Though this extra income was used up for other expenses and I have not reinvested it.

    Sir, you have mentioned to be wary of Birla and ICICI…Would you suggest any other MFs to replace them or do you suggest that I continue holding these..

    Regarding the 3 to 5 year time frame…The MF money would be used towards my son’s education which is actually more longer term…Since I have been holding the MFs for 3 years already I can hold them for 10 to 12 years more .. however as I approach the last few years would prefer to move the gains to an FD at a later point in time …

    Addressing Mr. Ashal’s queries…

    will check the Nifty/sensex returns and get back on this forum…
    Also will check portfolio of each fund as you have suggested and get back on this forum..

    1. Ramesh says:

      Your approach is inconsistent. How?

      1. The idea of your investments is long term (10-12 year frame). Still, you have opted for Dividend options AND when you receive those dividends, you use them up. For any form of investment, the idea is Either to Increase Corpus OR generate income. In your case, it is the former, and hence you should opt only and only for Growth options.
      2. Regarding ICICI and Birla, if you will use only HDFC’s funds, your returns should still be decent. That way, you can monitor them in a better manner and you still get very decent funds.
      3. Use either HDFC Top 200 or HDFC Prudence growth options for investments. They should behave similarly in future overall. You can put your extra money into either of the two. Regarding others, after the completion of 1 year term for them (just check the specific exit load period), you can shift their monies into your preferred HDFC fund.

      4. As a general thing, a bad past 3-5 year return means good future return potential (and vice versa).

  2. Dear Chetana, May I know the return generated by Nifty or Sensex for the same period? There is more to it, Please do check the portfolio of your funds & look is it really diversified or you are holding same shares in different MFs? Is it really a diversified portfolio?

    Thanks

    Ashal

  3. Ramesh says:

    So 5% is your Unrealised Gain. What about the Realised Gain, in the form of dividends received?

    1. In any case, if you want the Unrealised Gain to increase, you need to have the Growth Options of various Equity plans.

    2. All of your funds are decent, though, personally I am wary of the Birla and ICICI funds.

    3. Equities will give you very high “changeable” returns over shorter terms. So your 3-5 year outlook is very less for proper equity return potential. What are your going to do with the money AFTER 5 year period? Explain that.

    4. If you do not require money in next 5 years, invest in equities. <-- in short.

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